Cabot (CBT) investor relations material

Executive summary

• Leadership transition announced: Erica McLaughlin to become President & CEO effective October 1, 2026, succeeding Sean Keohane after a decade in the role, ensuring continuity in strategy and execution.

• Q3 2026 delivered adjusted EPS of $1.67, up 4% sequentially, with diluted EPS at $0.12 due to significant after-tax charges for restructuring and benefit plan terminations.

• Net income attributable to shareholders was $6M ($0.12/share) for Q3 2026, down from $101M ($1.86/share) in Q3 2025, mainly due to higher restructuring costs, lower EBIT in Reinforcement Materials, and a pension plan settlement charge.

• Battery materials platform highlighted as a key long-term growth driver, with FY2026 EBITDA expected at approximately $40M and a 24% trailing 12-month EBITDA margin.

• Achieved EcoVadis platinum sustainability rating for sixth consecutive year, placing in top 1% of basic chemicals manufacturers.

Financial highlights

• Q3 2026 adjusted EPS was $1.67; diluted EPS was $0.12; net sales were $982M, up from $923M in Q3 2025.

• Operating cash flow for Q3 was $75M, with discretionary free cash flow at $91M; cash and cash equivalents stood at $250M, and liquidity at $1.3B.

• Net debt to EBITDA ratio was 1.4x as of June 30, 2026.

• CapEx for Q3 was $38M; full-year FY26 CapEx expected at $200M–$215M.

• No share repurchases in Q3, but $101M repurchased year-to-date; $24M returned via dividends in Q3.

Outlook and guidance

• Fiscal 2026 adjusted EPS guidance tightened to $6.15–$6.45 per share.

• Q4 expected to see modest sequential EBIT decline in Reinforcement Materials and Performance Chemicals due to seasonality and normalization.

• CapEx for FY26 narrowed to $200M–$215M, supporting growth and maintenance.

• Full-year operating tax rate expected in the range of 28% to 30%.

• Sufficient liquidity anticipated to meet operational and capital needs for the next twelve months and foreseeable future.